What affects intranational price dispersion?: The case of Japanese gasoline prices
The empirical analysis on price dispersion, as described by [Engel, C., Rogers, J.H., 1996. How wide is the Border? American Economic Review 86, 1112-1125], is to investigate the determinants of international relative price fluctuations. Using data from the Japanese gasoline industry, we investigate the implications of the market structure for intranational price dispersion. Our empirical results suggest that: (1) in conformity with the double marginalization model, the dispersion of the wholesale gasoline price is affected by the relative retailer's margin and (2) the dispersion of the retail gasoline margin is influenced by the degree of competition and advertising. Considering these results synthetically, the retail price dispersion is amplified by the retail market structure both directly and indirectly.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Matthias Lutz, 2004. "Pricing in Segmented Markets, Arbitrage Barriers, and the Law of One Price: Evidence from the European Car Market," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 456-475, 08.
- Daniel Berkowitz & David DeJong, 1998.
"Russia's Internal Border,"
William Davidson Institute Working Papers Series
189, William Davidson Institute at the University of Michigan.
- Konstantin Gluschenko, 2004.
"Analysing changes in market integration through a cross-sectional test for the law of one price,"
International Journal of Finance & Economics,
John Wiley & Sons, Ltd., vol. 9(2), pages 135-149.
- Yin-wong Cheung & Eiji Fujii, 2005.
"Cross-Country Relative Price Volatility: Effects of Market Structure,"
192005, Hong Kong Institute for Monetary Research.
- Yin-Wong Cheung & Eiji Fujii, 2006. "Cross-country Relative Price Volatility: Effects of Market Structure," Review of International Economics, Wiley Blackwell, vol. 14(5), pages 836-848, November.
- Yin-Wong Cheung & Eiji Fujii, 2005. "Cross-Country Relative Price Volatility: Effects of Market Structure," CESifo Working Paper Series 1456, CESifo Group Munich.
- Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-54, July/Aug..
- Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-59, September.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Janet Ceglowski, 2003. "The law of one price: intranational evidence for Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 36(2), pages 373-400, May.
- Greenhut, M L & Ohta, H, 1979. "Vertical Integration of Successive Oligopolists," American Economic Review, American Economic Association, vol. 69(1), pages 137-41, March.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
- Jacks, David S., 2006. "What drove 19th century commodity market integration?," Explorations in Economic History, Elsevier, vol. 43(3), pages 383-412, July.
- Mitra, Anusree & Lynch, John G, Jr, 1995. " Toward a Reconciliation of Market Power and Information Theories of Advertising Effects on Price Elasticity," Journal of Consumer Research, Oxford University Press, vol. 21(4), pages 644-59, March.
- David C. Parsley & Shang-Jin Wei, 2000.
"Explaining the Border Effect: The Role of Exchange Rate Variability, Shipping Costs, and Geography,"
NBER Working Papers
7836, National Bureau of Economic Research, Inc.
- Parsley, David C. & Wei, Shang-Jin, 2001. "Explaining the border effect: the role of exchange rate variability, shipping costs, and geography," Journal of International Economics, Elsevier, vol. 55(1), pages 87-105, October.
- Mahbub Morshed, A. K. M., 2003. "What can we learn from a large border effect in developing countries?," Journal of Development Economics, Elsevier, vol. 72(1), pages 353-369, October.
- Charles Engel & John H. Rogers, 1995.
"How wide is the border?,"
International Finance Discussion Papers
498, Board of Governors of the Federal Reserve System (U.S.).
- Charles Engel & John H. Rogers, 1995. "How wide is the border?," Research Working Paper 95-09, Federal Reserve Bank of Kansas City.
- Charles Engel & John H. Rogers, 1994. "How Wide is the Border?," NBER Working Papers 4829, National Bureau of Economic Research, Inc.
- Engel, C. & Rogers, J.H., 1995. "How Wide is the Border?," Papers 4-95-16, Pennsylvania State - Department of Economics.
- Hisham Foad, 2005. "Europe Without Borders? The Effect of the EMU on Relative Prices," Emory Economics 0515, Department of Economics, Emory University (Atlanta).
- Choe, Chongwoo, 1999. "Retails and Wholesale Margins in Successive Cournot Oligopolies," Australian Economic Papers, Wiley Blackwell, vol. 38(1), pages 1-8, March.
- Joseph J. Spengler, 1950. "Vertical Integration and Antitrust Policy," Journal of Political Economy, University of Chicago Press, vol. 58, pages 347.
When requesting a correction, please mention this item's handle: RePEc:eee:japwor:v:20:y:2008:i:4:p:563-584. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.